e.g.
MCD
closed at 97.64
Buy the stock, sell the June 97.50 call at 3.15 , buy the June 95 put at 2.96
WILL HAVE AN $85 DIVIDEND
price...........P/L.
100............$5.00 + $85 dividend = $90
97.64.........$90.00
97.35.........$69.60
97.00.........$41.23
96.00.........(58.87)...